Typical. We are still thought of as primarily a solar company by most of Wall Street (just read any recent articles for verification) even though the company has diversified considerably from those days. Even though flawed, by this logic we should participate somehow in the solar sector moves. However, we do not, except on the downside usually. How many 10% rallies have we seen in the last several months that GTAT watched from the sidelines. We aren't participating in sapphire/LED well either, with RBCN dogging us. We are up today trivially with the broader market, and volume continues to drift lower by the week. I maintain that Wall Street simply has no idea how to categorize or value this company. None. And yes, there is oh so much manipulation. You non-believers are simply naive.
The more sophisticated investors do their homework and they know not only that GTAT isn't just a solar company, but they know that it is considerable upstream in the solar area. If the rich people and the professionals, didn't do their homework, they would be neither rich nor professional and yes, the value of GTAT is influenced by a number of factors, so it is probably not a simple thing for even professionals to value. Then there is the volatility and yes you are right, much of the volatility has to do with market manipulation. This stock is verily heavily shorted, and I am sure that the short interest would not appreciate a big run-up on the stock price and they do work to keep it down, methinks. Another factor is that really how much knowledge do most of us really have about new potential customers for GTAT or even which companies exactly form their customer base. They are also in expansion mode, which has great potential to make a lot of money for this company, but expansion is always risky. When companies expand too fast they sometimes go broke. I don;t see that happening to GTAT, however, because this is a well run and well managed company and they seem to make careful smart acquisitions and they don't get ahead of themselves. To me it looks like the company has fantastic potential, both in the long and medium term and they are doing a lot of talking about 2014 and beyond. Near term it is hard to say whether GTAT or any other company will be going up and down on a certain day or in a certain week. The traders seem to be able to figure it out more often than not, but that is more about technical expertise and experience than about what a company is really worth. If you look at the longer term trend over the most recent months, you can see that this stock is rising, albeit slowly and I believe that is due to the outlook for their entire business, not just solar.
well said. some paragraphs would be nice. people seem to forget this has gone from 2.70 to 4.20. that's like a 27.00 stock moving to 42.00 the key here is if you believe the company is going to stay in business and you are watching it everyday, buy some when it falls and sell it back on the way up. just keep your core position intact.
I agree that Wall Street can't figure out how to group this company nor the value of the company overall. The grouping dilemma IMO is the direct result of TG's diversification plan. It might be a little perplexing right now, but remember when this company was GT Solar just 3 years ago and it's fortunes were totally dependent on Chinese PV makers. I don't think anyone wants to go back there even with the present re-energizing of solar. I for one am very glad for the multitude of prospects and variety of businesses that now are part of GT. It's not apparent today and maybe not for another quarter, but GT's diversification will eventually show up in stability of revenues and also will eventually get factored into the share price.
I did some reading on high shorted stocks this week to try and grasp this short interest (beyond the hedge on the convertible)
The result is to stay away from stocks with small short interest because they can sell off quickly and buy good companies with high short interest because buying is more likely. Kind of like playing black on roulette after 10 reds come up ;) Where the shorts are betting red again because 10 reds came up.
The point being is that the selling is already baked into shorted stocks
Sentiment: Strong Buy
I have been amazed when I happen upon a GTAT article supposedly written by someone with resources, and they talk about GTAT as if the price of solar panels is the only thing to consider with it. It's as if they don't do any research, but yet still write an article. I wish I could make a living writing articles based on two/three year old research.
johnb, I couldn't agree with you more. Some people who write these articles have no business claiming they know anything about anything, when their knowledge base is about the same as a novice who has no idea what he or she is talking about. Fortunately, though, there are other people that write really informative articles about GTAT and/or other stocks.
The other thing that I have noticed is that even the real experts on investment and the stock market in general often have completely opposite opinions on where the market is headed and where the economy is headed and they are not even incompetent. It is just like politics and religion. Everyone has their own opinion and they are convinced that they are right, although at least the real experts can back up their point of view with facts and not simply hot air. There are often many solid reasons behind opposing points of view and it is informative to listen to people who actually know what they are talking about, whether you agree with them or not. Of course there are many public figures such as politicians who specialize in hot air and sound bites, because it serves their purposes. A lot of other public figures and/or people in the media also make their living distorting the facts. It is their job. Nothing is simple these days. That is for sure.